SuRo Capital Corp. Third Quarter 2024 Preliminary Investment Portfolio Update
Continues to Execute on AI Strategy with Significant New Investments
Net Asset Value Anticipated to be $6.50 to $7.00 Per Share
NEW YORK — SuRo Capital Corp. (“SuRo Capital”, the “Company”, “we”, “us”, and “our”) (NASDAQ: SSSS) has released an important update regarding its investment portfolio for the most recent quarter.
Mark Klein, the Company’s Chairman and Chief Executive Officer, explained that for over a decade, SuRo Capital has served as a conduit for investors seeking exposure to exclusive venture capital opportunities. This unique platform provides investors access to some of the most prominent and sought-after private enterprises before they transition into publicly traded companies. Our current investment portfolio emphasizes key areas such as artificial intelligence (AI), innovative consumer brands, and dynamic software solutions.
Highlighting the Company's active investment strategy in recent times, Mr. Klein noted, "This year marks a period of remarkable investment activity for SuRo Capital, representing one of our most dynamic years in the last decade. In this quarter alone, we significantly invested $17.5 million in OpenAI through ARK Type One Deep Ventures Fund LLC, one of the world’s leading AI developers. Additionally, we upped our stake in CoreWeave, a provider specializing in AI cloud computing, with an investment of $5.0 million. Following this, we deployed $12.0 million into VAST Data, focusing on AI infrastructure aimed at enhancing productivity and data management. We also further invested an extra $5.0 million into CoreWeave.”
Mr. Klein expressed optimism regarding these substantial investments, stating, “With our existing investment alongside these new contributions, we've committed nearly $55.0 million into top-tier AI infrastructure firms. The enormous market potential of AI convinces us that a significant allocation of our portfolio towards AI infrastructure will foster success for our shareholders.”
During the last quarter, the Board of Directors approved a revolutionary repurchase initiative involving up to $35.0 million for the 6.00% Notes due in 2026. Additionally, they sanctioned the issuance of up to $75.0 million in private convertible notes with an interest rate of 6.50% due in 2029, kicking off with an initial offering of $25.0 million. This strategic refinancing aims to bolster our balance sheet and offers us more flexibility for future investments, ensuring increased long-term shareholder value,” concluded Mr. Klein.
Earlier reports indicated that SuRo Capital’s net assets reached approximately $162.3 million, equating to $6.94 per share, during the previous quarter ending June 30, 2024, and approximately $212.0 million, or $8.41 per share, at September 30, 2023. The current estimate for the Company’s net asset value as of September 30, 2024, lies between $6.50 to $7.00 per share, based on available data.
Investment Portfolio Update
As of September 30, 2024, SuRo Capital holds investments in 36 portfolio companies, including 32 privately held and 4 publicly traded entities, with some possibly subject to specific lock-up provisions.
In this quarter, SuRo Capital made notable investments:
| Portfolio Company | Investment | Transaction Date | Amount |
| OpenAI Global, LLC – ARK Type One Deep Ventures Fund LLC | Convertible Equity via Class A Interest | 9/25/2024 | $17.5 million |
| CoreWeave, Inc. | Common Shares | 9/26/2024 | $5.0 million |
Additionally, SuRo Capital reported exits or proceeds from various investments:
| Portfolio Company | Transaction Date | Quantity | Average Net Share Price | Net Proceeds | Realized Gain/(Loss) |
| Churchill Sponsor VII LLC | 8/18/2024 | N/A | N/A | $- | $(0.3 million) |
| OneValley, Inc. (f/k/a NestGSV, Inc.) | 8/29/2024 | N/A | N/A | $3.0 million | $(6.6 million) |
| PSQ Holdings, Inc. (d/b/a PublicSquare) | Various | 359,845 | $2.82 | $1.0 million | $0.7 million |
| SPBRX, INC. (f/k/a GSV Sustainability Partners, Inc.) | 9/30/2024 | N/A | N/A | $0.4 million | $(6.8 million) |
| YouBet Technology, Inc. (d/b/a FanPower) | 8/22/2024 | N/A | N/A | $- | $(0.8 million) |
SuRo Capital’s liquid assets were around $39.5 million as of September 30, 2024, consisting of cash and publicly traded securities not subject to lock-ups.
As of September 30, 2024, SuRo Capital had 23,378,002 shares of its common stock outstanding.
Convertible Note Purchase Agreement
On August 6, 2024, SuRo Capital entered into a Note Purchase Agreement, allowing the potential issuance of up to $75.0 million in total principal amount of 6.50% Convertible Notes due in 2029. The first phase of this agreement initiated with a sale of $25.0 million. Interest will be paid quarterly starting September 30, 2024, maturing on August 14, 2029, giving the Purchaser the option of conversion into common stock.
Note Repurchase Program
SuRo Capital has initiated a program allowing for the repurchase of up to $35.0 million of its 6.00% Notes due 2026. By September 30, 2024, 1,010,136 units had been repurchased, with ongoing repurchases increasing accessibility in the market.
Share Repurchase Program
Since its establishment in August 2017, SuRo Capital has successfully repurchased over 6.0 million shares for an aggregate of around $39.3 million. The current authorization offers the potential for repurchases up to $20.7 million.
Preliminary Estimates and Guidance
The provided preliminary financial estimates are unaudited and subject to verification. The Company anticipates announcing comprehensive results for the third quarter in November.
About SuRo Capital Corp. SuRo Capital Corp. operates as a publicly traded investment fund focusing on high-growth, venture-backed private companies, empowering investors through its unique investment strategy and platform.
Contact
SuRo Capital Corp.
(212) 931-6331
IR@surocap.com
Frequently Asked Questions
What updates has SuRo Capital provided on its investments?
SuRo Capital has highlighted significant investments in leading AI companies like OpenAI and CoreWeave, totaling approximately $55 million.
What does the company project for its net asset value?
As of September 30, 2024, the estimated net asset value is projected to be between $6.50 and $7.00 per share.
How does SuRo Capital's investment strategy benefit shareholders?
The dedicated focus on AI infrastructure aims to capitalize on large growth opportunities, enhancing shareholder value over time.
What was the repurchase program approved by SuRo Capital’s Board?
The Board approved a note repurchase program allowing up to $35 million for the 6.00% Notes due 2026.
How has SuRo Capital performed in share repurchases since 2017?
SuRo Capital has repurchased over 6 million shares, reflecting an ongoing commitment to enhancing shareholder value.
